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Great Ajax Corp. (AJX) Q3 2024 Earnings Call Transcript Summary

Futu News ·  Oct 21 23:13  · Conference Call

The following is a summary of the Great Ajax Corp. (AJX) Q3 2024 Earnings Call Transcript:

Financial Performance:

  • Great Ajax Corp reports a GAAP net income loss of $8 million or $0.18 per diluted share for Q3.

  • Earnings available for distribution were negative $5.4 million or $0.12 per diluted share.

  • Declared a dividend in the third quarter of $0.06.

  • Cash and equivalents on the balance sheet amounted to $84 million with $30 million available for investment and maintaining a roughly $50 million reserve.

Business Progress:

  • Unwound $85 million of residential mortgage loans generating around $18 million in cash.

  • Sold 62.7 million of residential securities, which generated $14 million of cash.

  • Closed in $100 million notional amount of AAA CMBS at approximately a 12% levered return.

  • Aiming for breakeven before dividends by the end of Q1 next year.

  • The company plans to change its name from Great Ajax to Rithm Property Trust in the fourth quarter.

Opportunities:

  • Entered bids on $1 billion of assorted commercial real estate loans as part of a strategy to redeploy capital into cash flowing assets.

  • Significant potential identified in managing out of banks' workout groups, which is becoming a focused area due to the recalibration of bank lending against distressed assets.

Risks:

  • Current investments might continue to experience negative carrying until strategic transformations are realized.

  • Balancing the risk of maintaining dividend payments amidst financial losses until redirection strategies are fully implemented.

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.

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